alleryStart learning →After a buy-back, a remaining investor's proportionate ownership
ARises as shares fall
BFalls as shares fall
CStays the same
DIs cancelled out
Answer & Solution
Correct answer: A. Rises as shares fall
With fewer shares outstanding, each remaining share represents a bigger fraction of the company.
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Related questions
Under Section 68, specified securities includeThe details of the transfer to capital redemption reserve are to be disclosed in the40,000 shares of face value Rs 5 are bought back at Rs 9. Equity share capital is debited Which can absorb the premium paid on a buy-back?Shares that a company has bought back areWithin six months after a buy-back, a company may still make aThe register of bought back shares is kept at the company'sThe compliance certificate annexed to the buy-back return is in Form